In your new position as chief financial officer for Gulf Barges Limited, the first task you have been assigned to complete is to prepare the income statement for the 12-month period ended June 30, 2022.
On your desk on your first day, the previous chief financial officer has left you valuable information to complete the task.
1. Total revenue recorded by Gulf Barges Limited during the accounting period was $185,852,000. Included in the total revenue figure is Other Revenue totalling $21,050,000 and Interest Income totalling $2,453,000.
2. Following is a list of expenses incurred by the company.
|
Expense Account |
Total Incurred |
|
Advertising and Marketing Costs |
$2,512,000.00 |
|
Assigned Overhead |
$15,483,000.00 |
|
Direct Labour |
$47,894,000.00 |
|
Direct Material |
$12,560,000.00 |
|
Entertainment |
$561,000.00 |
|
Insurance and Utilities |
$1,690,000.00 |
|
Office Supplies |
$590,000.00 |
|
Repairs and Maintenance |
$1,457,000.00 |
|
Salaries to Administrative Staff |
$6,801,000.00 |
|
Sales Commissions |
$21,036,000.00 |
|
Travel Costs |
$1,260,000.00 |
3. On January 1, 2022, the company sold a block of land held for investment and recognized a gain on the sale of $12,861,000.
4. On April 1, 2022, the company sold equipment that resulted in a loss of $4,891,000.
5. The company incurred finance interest charges during the accounting period of $14,890,000.
6. The company is involved in joint venture operations. As a result of poor financial conditions, the company recorded a net loss of $15,069,000 from its share of the joint venture operations.
7. From the operations of its associate firms, the company recorded a net gain of $4,287,000 for the financial period ended June 30, 2022.
8. If the company reports a profit during the year, the effective corporate tax rate is 25%. If a loss is reported the effective tax rate is zero.
Required:
Using the information supplied, prepare a multi-step income statement for Gulf Barges Limited for the accounting period that is consistent with IFRS IAS 1 requirements and recommendation, and as preferred for this course. (Hint: Expenses should be classified by function (e.g., cost of goods sold) not nature.
In: Accounting
In your new position as chief financial officer for Gulf Barges Limited, the first task you have been assigned to complete is to prepare the income statement for the 12-month period ended June 30, 2022.
On your desk on your first day, the previous chief financial officer has left you valuable information to complete the task.
1. Total revenue recorded by Gulf Barges Limited during the accounting period was $185,852,000. Included in the total revenue figure is Other Revenue totalling $21,050,000 and Interest Income totalling $2,453,000.
2. Following is a list of expenses incurred by the company.
|
Expense Account |
Total Incurred |
|
Advertising and Marketing Costs |
$2,512,000.00 |
|
Assigned Overhead |
$15,483,000.00 |
|
Direct Labour |
$47,894,000.00 |
|
Direct Material |
$12,560,000.00 |
|
Entertainment |
$561,000.00 |
|
Insurance and Utilities |
$1,690,000.00 |
|
Office Supplies |
$590,000.00 |
|
Repairs and Maintenance |
$1,457,000.00 |
|
Salaries to Administrative Staff |
$6,801,000.00 |
|
Sales Commissions |
$21,036,000.00 |
|
Travel Costs |
$1,260,000.00 |
3. On January 1, 2022, the company sold a block of land held for investment and recognized a gain on the sale of $12,861,000.
4. On April 1, 2022, the company sold equipment that resulted in a loss of $4,891,000.
5. The company incurred finance interest charges during the accounting period of $14,890,000.
6. The company is involved in joint venture operations. As a result of poor financial conditions, the company recorded a net loss of $15,069,000 from its share of the joint venture operations.
7. From the operations of its associate firms, the company recorded a net gain of $4,287,000 for the financial period ended June 30, 2022.
8. If the company reports a profit during the year, the effective corporate tax rate is 25%. If a loss is reported the effective tax rate is zero.
Required:
Using the information supplied, prepare a multi-step income statement for Gulf Barges Limited for the accounting period that is consistent with IFRS IAS 1 requirements and recommendation, and as preferred for this course. (Hint: Expenses should be classified by function (e.g., cost of goods sold) not nature.
In: Accounting
2.) You want to determine if the average height of men in California is greater than the average height of men in Nebraska. You take a random sample of 30 men in California and 30 men in Nebraska. The data below represents the heights of the men in inches. Write the R code that does the following:
H0: Difference in means in populations is zero.
Ha: Difference in means in the populations is not zero.
NE_heights<-c( 73.5, 68.5, 70, 63, 64, 65, 64, 70, 61, 61.25, 69, 73, 69, 66, 69.5, 68,
64, 64, 72.5, 69, 67, 63, 66.5, 70.5, 64, 67, 71, 74, 68, 65)
CA_heights <- c( 72, 73.5, 74, 75, 66, 78, 70, 73, 74, 68, 71, 68, 67, 66, 73, 72, 82, 71, 64, 72, 65, 66, 69, 83, 67, 74, 76, 65, 74, 79)
a.) Makes two boxplots, an orange one for the CA_heights data, and a red one for the NE_heights data which labels the main title "Men’s heights California vs Nebraska" and names the CA_heights data as "CA heights" and the NE_heights data as "NE heights".
b.) Computes the, sample size, mean and standard deviation of both CA_heights and NE_heights data.
c.) Performs an unpaired "less" than t-test with =.02 to decide whether there is a statistically significant difference between men’s heights in California and Nebraska.
d.) Paste your R code into Run R Script and run the script.
e.) Paste the R output to the bottom R code.
f.) Looking at the p-value in the R output, decide if there is evidence to suggest that there is a statistically significant difference between men’s heights in California and Nebraska.
Write the p-value and your conclusion at the top of your R code.
In: Statistics and Probability
2. Using the same data, determine if there is a correlation between smoking and an elevated resting pulse rate. Be sure to support your response with your data analysis.
DATA
Pulse1 The resting pulse of each student
Pulse2 The pulse after running or not running for each student (after treatment)
Ran Whether or not the student ran in place:
Yes or No (treatment)
Smokes Whether or not the student smokes regularly: Yes or No
Gender The gender of the student: M or F
Height The height of the student, in inches Weight The weight of the student, in pounds
Activity The usual activity level of the student: Slight, Moderate, or A lot
Pulse1 Pulse2 Ran
Smokes Gender Height
Weight Activity
64 88 Yes No M 66 140 Moderate
58 70 Yes No
M 72 145 Moderate
62 76 Yes Yes
M 73.5 160 A lot
66 78 Yes Yes
M 73 190 Slight
64 80 Yes No
M 69 155 Moderate
74 84 Yes No
M 73 165 Slight
84 84 Yes No
M 72 150 A lot
68 72 Yes No
M 74 190 Moderate
62 75 Yes No
M 72 195 Moderate
76 118 Yes No
M 71 138 Moderate
90 94 Yes Yes
M 74 160 Slight
80 96 Yes No
M 72 155 Moderate
92 84 Yes Yes
M 70 153 A lot
68 76 Yes No
M 67 145 Moderate
60 76 Yes No
M 71 170 A lot
62 58 Yes No
M 72 175 A lot
66 82 Yes Yes
M 69 175 Moderate
70 72 Yes Yes
M 73 170 A lot
68 76 Yes Yes
M 74 180 Moderate
72 80 Yes No
M 66 135 A lot
70 106 Yes No
M 71 170 Moderate
74 76 Yes No
M 70 157 Moderate
66 102 Yes No
M 70 130 Moderate
70 94 Yes Yes
M 75 185 Moderate
96 140 Yes No
F 61 140 Moderate
62 100 Yes No
F 66 120 Moderate
78 104 Yes Yes
F 68 130 Moderate
82 100 Yes No
F 68 138 Moderate
100 115 Yes Yes
F 63 121 Moderate
68 112 Yes No
F 70 125 Moderate
96 116 Yes No
F 68 116 Moderate
78 118 Yes No
F 69 145 Moderate
88 110 Yes Yes
F 69 150 Moderate
62 98 Yes Yes
F 62.75 112 Moderate
80 128 Yes No
F 68 125 Moderate
62 62 No No
M 74 190 Slight
60 62 No No
M 71 155 Moderate
72 74 No Yes
M 69 170 Moderate
62 66 No No
M 70 155 Moderate
76 76 No No
M 72 215 Moderate
68 66 No Yes
M 67 150 Moderate
54 56 No Yes
M 69 145 Moderate
74 70 No No
M 73 155 A lot
74 74 No No
M 73 155 Moderate
68 68 No No
M 71 150 A lot
72 74 No Yes
M 68 155 A lot
68 64 No No
M 69.5 150 A lot
82 84 No Yes
M 73 180 Moderate
64 62 No No
M 75 160 A lot
58 58 No No
M 66 135 A lot
54 50 No No
M 69 160 Moderate
70 62 No Yes
M 66 130 Moderate
62 68 No Yes
M 73 155 Moderate
76 76 No No
M 74 148 A lot
88 84 No No
M 73.5 155 Moderate
70 70 No No
M 70 150 Moderate
90 88 No Yes
M 67 140 Moderate
78 76 No No
M 72 180 A lot
70 66 No Yes
M 75 190 Moderate
90 90 No No
M 68 145 Slight
92 94 No Yes
M 69 150 Moderate
60 70 No Yes
M 71.5 164 Moderate
72 70 No No
M 71 140 Moderate
68 68 No No
M 72 142 A lot
84 84 No No
M 69 136 Moderate
74 76 No No
M 67 123 Moderate
68 66 No No
M 68 155 Moderate
84 84 No No
F 66 130 Moderate
61 70 No No
F 65.5 120 Moderate
64 60 No No
F 66 130 A lot
94 92 No Yes
F 62 131 Moderate
60 66 No No
F 62 120 Moderate
72 70 No No
F 63 118 Moderate
58 56 No No
F 67 125 Moderate
88 74 No Yes
F 65 135 Moderate
66 72 No No
F 66 125 Moderate
84 80 No No
F 65 118 Slight
62 66 No No
F 65 122 A lot
66 76 No No
F 65 115 Moderate
80 74 No No
F 64 102 Moderate
78 78 No No
F 67 115 Moderate
68 68 No No
F 69 150 Moderate
72 68 No No
F 68 110 Moderate
82 80 No No
F 63 116 Slight
76 76 No Yes
F 62 108 A lot
87 84 No No
F 63 95 A lot
90 92 No Yes
F 64 125 Slight
78 80 No No
F 68 133 Slight
68 68 No No
F 62 110 Moderate
86 84 No No
F 67 150 A lot
76 76 No No
F 61.75 108 C
In: Statistics and Probability
The data in the table represent the number of licensed drivers in various age groups and the number of fatal accidents within the age group by gender. Complete parts (a) to (c) below.
LOADING...
Click the icon to view the data table.
<_16 12 227
12 77
16-20 6424 5180
6139 2113
21-24 6936 5016
6816 1537
25-34 18068 8587
17664 2780
35-44 20406 7990
20048 2742
45-54 19898 7138
19984 2285
55-64 14324 4527
14441 1514
65-74 8194 2274
8376 938
>_74 4803 2022
5375 957
(a) Find the least-squares regression line for males treating the number of licensed drivers as the explanatory variable, x, and the number of fatal crashes, y, as the response variable. Repeat this procedure for females.
(b) Interpret the slope of the least-squares regression line for each gender, if appropriate. How might an insurance company use this information?
What is the correct interpretation of the slope of the least-squares regression line for males? Select the correct choice below and, if necessary, fill in the answer box to complete your choice.
(c) Was the number of fatal accidents for 16 to 20 year old males above or below average? Was the number of fatal accidents for 21 to 24 year old males above or below average? Was the number of fatal accidents for males greater than 74 years old above or below average? How might an insurance company use this information? Does the same relationship hold for females?
In: Statistics and Probability
Simean & Co, a firm of CPA’s, issued an unqualified audit report for its client, Xing Manufacturing Corporation, a footwear manufacturer in Asia. Xing Manufacturing, listed its head office in Toronto, Ontario, and its shares were traded on a Canadian Stock Exchange. Simean & Co. knew the company was in the process of refinancing a significant bank loan coming due, and the bank was anxious to see the year end results. After an unqualified audit report was issued, the regulator of the stock exchange halted the trading of the shares after allegations of management fraud came to light. As a result, the share price plummeted and the company went out of business.
Required:
(a) List two (2) parties/groups that Simean & Co. owe a duty of care.
(b) Document four (4) criteria the bank must demonstrate to establish negligence?
(c) What two (2) legal defences are available to Simean & Co?
In: Accounting
Telma Ltd. is a public company incorporated in Alberta and traded on the Toronto Stock Exchange. In December 20X6, Telma management decided that cost exceeded NRV for a significant portion of the inventory. Consequently, the company wrote the Class A inventory down from $350,000 to $150,000 and the Class B inventory down from $425,000 to $325,000.
In June 20X7, the value of Class B inventory rose to $365,000. Half of the Class B was sold for $190,000 in November of that year.
In March 20X8, the Class A inventory was sold in bulk for a price of €100,000. At the time of the sale, €1 = Cdn$1.70. The buyer paid Telma’s invoice one month later, when €1 = Cdn$1.62.
Required:
1. Prepare all entries, assuming that the direct write-down method is used for lower of cost or NRV.
2. Prepare all entries, assuming instead that the allowance method is used for lower of cost or NRV.
In: Accounting
8. Chiptech Inc. is an established computer chip Örm with several proÖtable existing products as well as some promising new products in development. The company earned $1 a share last year and just paid out a dividend of $0.50 per share. Investors believe the company plans to maintain its dividend payout ratio at 50%. ROE of the company equals 20%. Everyone in the market expects this situation to continue indeÖnitely.
(a) What is the market price of Chiptech stock? The required rate of return for the computer chip industry is 15% and the company has just gone ex-dividend (i.e., the next dividend will be paid a year from now at t = 1).
(b) Suppose you discover that Chiptechís competitor has developed a new chip that will eliminate Chiptechís current technology advantage in this market. This new product, which will be ready to come to the market in 2 years, will force Chiptech to reduce the prices of its chips to remain competitive. This will decrease Chiptechís ROE to 15%. The company then will reduce the plowback ratio to 0.4. The plowback ratios will be decreased at the end of the second year, at t = 2: The annual year-end dividend for the second year (paid at t = 2) will be 60% of that yearís earnings. What is your estimate of Chiptechís intrinsic value per share? (Hint: Carefully prepare a table of Chiptechís earnings and dividends for each of the next 3 years. Pay close attention to the change in the payout ratio in t = 2.)
(c) No one else in the market perceive the threat to Chiptechís market. In fact, you are conÖdent that no one else will become aware of the change in Chiptechís competitive status until the competitor Örm publicly announces its discovery near the end of year 2. What will be the rate of return on Chiptech stock in the coming year (between t = 0 and t = 1)? In the second year (between t = 1 and t = 2)? The third year (between t = 2 and t = 3)? (Hint: Pay attention to when the market catches on to the new situation.)
In: Finance
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:
| Variable costs per unit: | ||
| Manufacturing: | ||
| Direct materials | $ | 27 |
| Direct labor | $ | 12 |
| Variable manufacturing overhead | $ | 3 |
| Variable selling and administrative | $ | 2 |
| Fixed costs per year: | ||
| Fixed manufacturing overhead | $ | 400,000 |
| Fixed selling and administrative expenses | $ | 70,000 |
During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $50 per unit.
Required:
1. Assume the company uses variable costing:
a. Compute the unit product cost for Year 1 and Year 2.
b. Prepare an income statement for Year 1 and Year 2.
2. Assume the company uses absorption costing:
a. Compute the unit product cost for Year 1 and Year 2.
b. Prepare an income statement for Year 1 and Year 2.
3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1.
In: Accounting
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:
| Variable costs per unit: | ||
| Manufacturing: | ||
| Direct materials | $ | 27 |
| Direct labor | $ | 14 |
| Variable manufacturing overhead | $ | 4 |
| Variable selling and administrative | $ | 3 |
| Fixed costs per year: | ||
| Fixed manufacturing overhead | $ | 240,000 |
| Fixed selling and administrative expenses | $ | 90,000 |
During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $58 per unit.
Required:
1. Assume the company uses variable costing:
a. Compute the unit product cost for Year 1 and Year 2.
b. Prepare an income statement for Year 1 and Year 2.
2. Assume the company uses absorption costing:
a. Compute the unit product cost for Year 1 and Year 2.
b. Prepare an income statement for Year 1 and Year 2.
3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1.
In: Accounting